"It is crucial in times of financial hardship that policyholders continue to have access to the support they need and are able to keep their valuable existing cover in place"
Initially launched during the pandemic to help members facing financial difficulties, the payment break enables vulnerable members with protection policies to stop paying premiums for a limited period without losing cover.
Payment breaks are offered a month at a time, for up to three months with no requirement for premiums to be repaid. Existing members that qualify can still make a claim in the usual way, as their cover will remain in place in line with the terms and conditions of their policy.
LV= staff are available to talk with members to understand their situation, signpost existing options and services available through their existing policy before considering any payment break.
Since April 2020, more than 300 LV= customers have benefited from the payment break option. Self-employed workers account for the majority of eligible members (93%), who would have no state benefit support or no other employee benefits if they were unable to work due to illness or injury.
Justin Harper, propositions and marketing director at LV=, said: “LV= payment breaks were developed with vulnerable customers in mind, allowing us to step in quickly at the height of the pandemic to assist those facing financial difficulties. It is crucial in times of financial hardship that policyholders continue to have access to the support they need and are able to keep their valuable existing cover in place, which we’re able to provide through our payment break option.
"We continue to embed vulnerable customer considerations into our culture, practices and processes, ensuring we support advisers and their more vulnerable clients. This is even more relevant as we see many households across the UK struggling to contend with increasing costs for their food, energy and fuel. The extension of our payment break is a tangible example of translating those considerations into meaningful action for our members.”
